Chesapeake Energy increases revolver size to $250 million

By Sara Rosenberg

New York, Nov. 8 - Chesapeake Energy Corp. increased its revolver to $250 million - with a committed borrowing base of $225 million - from $225 million in November, according to a filing with the Securities and Exchange Commission. Bear Stearns Corporate Lending Inc. is the syndication agent and Union Bank of California is the administrative agent and collateral agent.

"We wanted to expand the number of people that could participate [in the revolver] to give us broader representation of credit in this credit-challenged time," a company spokesman told Prospect News.

The Oklahoma City natural gas producer anticipates increasing the borrowing base to $250 million and extending the term of the facility to June 2005 during the fourth quarter of 2002, the filing said.

There is an unused commitment fee of 50 basis points on the loan.

Security for the revolver is producing oil and gas properties.

At Sept. 30, there were no outstanding borrowings under the facility and $25 million of the loan was being used to secure letters of credit.

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